KLCI adds 0.28%, gains seen limited ahead of Budget 2019

-A +A

KUALA LUMPUR (Nov 2): The FBM KLCI added 0.28% in early trade this morning, tracking regional markets, but gains are seen limited ahead of the tabling of Budget 2019 this afternoon.

At 9.05am, the FBM KLCI rose 4.87 points to 1,711.79.

The early gainers included KESM Industries Bhd, Hong Leong Financial Group Bhd, Supermax Corp Bhd, Pentamaster Corp Bhd, Tenaga Nasional Bhd and Elsoft Research Bhd.

Asian stocks built on the best weekly rally since September, stoked by hopes for trade talks and China stimulus. That offset underwhelming news from Apple Inc. that weighed on Nasdaq futures, according to Bloomberg.

South Korean stocks led the advance, and along with rising Japanese shares took this week’s rally close to 3 percent. Gains came after a phone call between Presidents Donald Trump and Xi Jinping showed the door is still open for U.S.-China trade talks. Australian equities slipped. Apple stoked concerns by saying it will stop reporting unit sales of its top product, sending its stock tumbling after hours. Ten-year Treasury yields edged higher ahead of Friday’s key U.S. jobs report, it said.

Hong Leong IB Research in a traders’ brief said despite despite the recent new developments on trade front, we believe Wall Street could stay muted ahead of US midterm election as profit taking activities may emerge after the recent rebound.

“Besides, investors will be focusing on the trade discussion between President Trump and President Xi later this month,” it said,

On the FBM KLCI, it said despite the positive Wall Street sentiment, the upside may be capped as profit taking activities could emerge further after the recent technical rebound on the FBM KLCI as well as buying interest to stall ahead of the “belt-tightening mode” Budget 2019 in order to sail through the tough fiscal situation in Malaysia.

“KLCI’s trading range will be located within 1,692-1,726,” it said.